GovernmentExecutive.com

The Defense Department task force seeking a way to ensure the quality, efficiency and fairness of the military healthcare system issued a final report Thursday with recommendations for higher fees for military retirees, which Congress rejected repeatedly when proposed by the Bush administration. The leaders of the congressionally created task force said a "modest" increase in enrollment fees would restore the balance between what the government and the beneficiaries pay.

They said the burden has shifted more to the government because the fees have not changed since 1996. Under the panel's recommendations, the fee increase would be phased in over four years and then indexed to inflation to maintain the balance. The amount retirees would pay would increase with the level of retired pay so that by 2011, families with retirement income under $20,000 would pay $900 a year for the TRICARE benefits, while those receiving more than $40,000 would pay $1,750.

Currently, all military retirees with dependents pay $460 a year, the same as when the TRICARE system was created. Gail Wilensky, the task force co-chairwoman, said the fees could be waived if the beneficiary adopted recommended wellness practices, such as stopping smoking. The task force also recommended increases in the pharmacy co-payments, from $3 for the "preferred" or lowest cost drugs to $15, with higher fees for other medications.

Congress has rejected almost identical proposals, while adding benefits that have driven the cost of military health care for active duty and reserve personnel and retirees from 4.5 percent of the defense budget in 1990 to a projected 12 percent in 2015, if there are no changes.

The estimated cost of $64 billion in 2015 could complicate the services' efforts to replace equipment worn out or destroyed in the prolonged conflicts in Iraq and Afghanistan. Wilensky and Air Force Gen. John Corley, the other co-chairman, emphasized that the thrust of the task force's efforts was to ensure that the healthcare system enhanced military readiness and gave service members, retirees and their dependents the quality care they deserve. They said they also had to improve efficiency, fairness and "balance."

Wilensky said the military system must be viewed in context of the overall government healthcare system, which is in "an unsustainable sprint" in cost.

"We are trying to become more efficient, to moderate the growth for the military," she said at a Pentagon briefing. Corley said the "fiscal realities, the money pressures are real," but the task force did not conduct its study with dollar figures in mind. He acknowledged that without changes in cost of the healthcare system the pressure on other defense programs would grow. "That's why we want to restore balance."

Asked about Congress's resistance to fee increases, Wilensky noted that Congress created the task force because it was aware of the growing financial problems. She acknowledged that next year would be "a particularly challenging time," because it is an election year, "but we believe the Congress will deal with the problem."

The task force recommended a wide range of management improvements, audits and pilot programs to find greater efficiency and to reduce costs. In addition, it said an effort was needed to find the best answer to concerns expressed by the administration about private employers who push workers out of their healthcare system into TRICARE.

COMMENTS

• Dr. Gail Wilensky, You claim that "having healthcare to be free a bad signal?? This is an INSULT to all the retired military people. The retired military people "pre-paid" for their so called "free healthcare" with 20+ yrs of military service, my husband served 25 yrs on active duty and one tour in Vietnam while others never served and some of them ran to Canada and then got amnesty. First of all we pay for Tricare Prime exactly NOT "free" healthcare. Have you ever served 20+ yrs in the military? If you had or your husband, if you have one, had served your attitude would change real quick. I bet you have no problem for the ILLEGAL IMMIGRANTS GETTING FREE HEALTHCARE on a daily basis for which we taxpayers pay for. Obviously NOTHING is done about it or it would not continue in full force every day. The ILLEGALS are getting FREE Healthcare and our military who served and fought for 20+ yrs as you stated ARE GIVING FREE HEALTHCARE A BAD SIGNAL????" A BAD SIGNAL WHILE PAYING FOR TRICARE PRIME???? You have no clue what you are talking about. Educate yourself! I read your profile, you might think you know something about the Veterans, but you have NO clue about retired military people and their families, what they have been promised, what they deserve, You are insulting our retired military and you are insulting your intelligence. You owe the retired military an apology before you continue to embarrass your self. Barbara Goode Posted February 1, 2008 10:21 AM
• As Ronald Reagan would say "Here we go again". It is truly an injustice that we have and will continually be lied too. For years we've placed our lives on the line, only to have our government and pentagon officials constantly advocate cutting promised benefit. I will never tell my sons "not" to join any branch of the military, but I will tell them to take what is promise like sugar dissolving in water. Retirees will get a scantly "Pay Increase" only to see it go-up-in-smoke with an increase on everything else we are required to pay for. Will we ever learn to take care of our own first. Herbert Lewis Jr (csm-ret) Posted December 29, 2007 1:29 PM
• $1750 a year doesn't sound like a modest increase to me. So that makes a bill like $145 a month or about $75 a pay period. This is getting right in line with what the private sector pays and that’s unfortunately for cheaper plans. Yep just another way for the current military leadership to screw those who came before them so they can once again pay for the damn war in Iraqi. Oh, and we should be sympathetic to the future needs... more and better toys and to pay for the war but they shouldn't stand behind the promises they made to past veterans concerning benefits for life at no cost. We can give free medical to politicians and their families, illegal aliens, criminals but yet a vet "OMG" no way. Oh don't let me forget decreased educational costs for illegal aliens. What is wrong here??? Can't one damn task force Pentagon alumnus just do the right thing and just say "NO". Haven't vets earned this benefit?? I ask these almighty task force quacks to join the military and walk a day in our boots. Also have your children and/or grandchildren join the military and stay for retirement. Then maybe you'll see vets earned this benefit in a lot more ways than some damn task force at the pentagon can even imagine. And further more, why isn't anyone looking into why health care costs keep going up???? Who is driving the costs, why does everything in health care keep going up? That's one of reasons why many don't have health insurance, cause the cost of coverage is through the roof!!! That IMO is what this task force needs to look at!!! KW Posted December 27, 2007 11:25 AM